Stages of supply chain management in the market are as follows:
Plan: In this first stage of supply chain management, organizations develop strategic plans to satisfy or meet customers’ demand for products and services on time. They try to reduce or avoid the bullwhip effect (inventory or supply swings that create inefficiency in supply chains).
Material management is also planned under this stage to execute the supply chain process successfully.
Source: After planning, organizations identify and shortlist vendors to supply materials and goods in the market. Organizations develop an agreement with the vendor through which they work in a streamlined and efficient method according to the guidelines and rules of this agreement. This is the first stage in supply chain management where collaboration and coordination start and flow with the whole supply chain management process.
Make: In this stage, products are manufactured and tested to ensure all the requirements necessary to produce goods and services in the market.
This stage is further followed by packing, storing, and releasing goods to provide them to the final consumer in the market.
Delivery: This stage attaches to the logistics and concentrates on the successful redelivery of products to the end-user. Transportation is needed for doorstep delivery of products that emphasize supply chain leaders who work very closely with each consumer for a firm in the market.
Warehouse management is crucial in this stage to process an effective supply chain in the market.
Return: This is the final stage in supply chain management that involves all product returns which are defective or unsupportive for customers.
It also connects with other stages of the process, such as inventory and transportation management support this end-stage in the market.
The Flow of Goods and Services through Supply Chain Management
The flows of goods and services in the market through the supply chain management process are as follows:
Physical Flow of Goods: This flow involves the transportation or movement of goods and services physically. It is the visible element of the supply chain which delivers the physical products and services, such as the storage of materialistic goods, and then delivers them to the final consumer.
Information Flows: These are based on the coordination of long-term plans and the market supply chain patterns, which are essential to control and manage the routine flow of goods and services. This flow coordinates them on both sides of the supply chain, such as up and down the supply chain, which helps the firms to maintain all records and create better relations in the market.
Importance of Supply Chain Management
The importance of supply chain management are as follows:
Supply chain management facilitates the business better to predict customers’ demands in the market and meet their demands by delivering them products fast and effectively, which further improves the brand image.
It also provides a competitive advantage by reducing the inefficiencies and product waste that improves the quality of products and services from the existing competitors.
Better supply chain management and its visibility assist the firm in risk management and make the logistics more efficient, improving the cash flow and lowering the management’s overhead cost because management can predict their capabilities in the market through supply chain networks.
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